Cabinet Secretary (CS) John Mbadi shared this information with the Senate Committee on Roads, Transportation, and Housing during a session where the proposed partnership was being discussed.
The proposed deal involves a private initiative by Adani Airports Holdings, an Indian company, to take over the management and development of JKIA through a long-term lease.
However, the deal has faced several challenges, including opposition from various groups and an ongoing court case.
CS Mbadi informed the committee that the Public Private Partnership (PPP) Committee, which is chaired by Treasury Principal Secretary Chris Kiptoo, has clearly stated that the project cannot proceed until all the conditions are met.
He emphasized that one of the main requirements is the absorption of all current JKIA staff into Adani's workforce.
The aim is to ensure that these employees are onboarded on better terms, giving them job security during the transition.
Additionally, the PPP Committee has instructed the Kenya Airports Authority (KAA) to give priority to Kenyan nationals for any new positions that may open up under Adani's management.
This condition is meant to safeguard local employment opportunities in the wake of foreign management.
Mbadi also mentioned that the PPP Committee has not yet approved any stage of the project without proper clearance and assessment.
The committee has been reviewing Technical Working Papers that analyze the project, offering recommendations for its implementation. These recommendations must be followed before any major agreements, such as the Concession Agreement, are signed.
The committee also directed KAA to carry out a thorough stakeholder engagement process, ensuring that the concerns and needs of all involved parties are addressed. This is intended to prevent disruptions and potential dissatisfaction among stakeholders.
Another key aspect of the Treasury’s conditions involves legal safeguards. The KAA has been instructed to seek legal clearance of the Concession Agreement, in line with Section 60(2) of the PPP Act.
The deal will also be subject to audits, with Adani required to adopt open book accounting, ensuring full transparency regarding the project’s finances. This will allow the government to monitor income and ensure its fair share is received.
The Treasury also emphasized the importance of a well-defined development plan, which must include clear timelines and details about the refurbishment of JKIA’s terminal and overall infrastructure. To avoid additional costs to passengers, Adani will need to meet certain revenue targets without immediately increasing charges for services at the airport.
The deal has sparked significant controversy. A court case is currently halting any progress on the deal, with the High Court issuing a temporary block on the proposed 30-year lease to Adani.
The case was brought forward by the Law Society of Kenya (LSK) and the Kenya Human Rights Commission (KHRC). These groups argue that Kenya does not need a long-term lease to raise the estimated $1.85 billion required to revamp the airport.
Opposition has also come from local aviation workers and unions, who fear job losses and the hiring of foreign workers.
Protests have erupted, with demonstrators attempting to shut down the airport in July. Despite these challenges, the Treasury maintains that any final decision on the deal will be made only after all conditions are thoroughly reviewed and met.
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